Analysis Of Kingsford Charcoals Effective Marketing...

Short case study Problem statement As the softening in the overall charcoal category in these years, the main problem of Kingsford Charcoal is to determine the effective marketing strategy to increase sales and future growth of the company. Solutions In order to overcoming the softening in Charcoal category, there are four solutions Kingsford Charcoal should take to reply to the new challenging’s including a shrinking market for charcoal and increased competition from gas grilling. †¢ Advertising Increasing the advertising spending to $7 million during the peak grilling seasons of April- September. The advertising message should focus on showing the benefit to using charcoal grilling, under slogan† taste it was grilled over a real wood fire†. †¢ Price Keep the existing price level †¢ Promotion Increase Charcoal consumption (increase charcoal grilling events) --12 month plan to increase charcoal consumption --Marketing opportunities with NASCAR, Pepsi, Budweiser †¢ Production: Build the new plants Justification 1) Keep the existing price level Increasing price is not a smart way to Kingsford, although is a fast and effect way to generate profit in a short term. Some probable benefits of increase price including keep their premium price to emphasize Kingsford’s premium brand image and stay in target 25-30% price gap relative to competitors. Beside these, also include the improvement profits per unit sold. From the appendix1, the two graphs show the volume and profit